The Cotton Corporation of India (CCI) may be required to purchase a small amount of cotton during the 2021-22 season, as kapas prices are expected to be higher than the minimum support price (MSP) for the majority of the season. Procurement may be necessary during peak season when prices fall below the MSP, according to top corporate executives.
Strong demand for cotton and depleting stocks, in addition to 10% import duty levied on cotton have caused prices to rise to Rs 6,500-7,000/quintal at the start of the season. The base price charged by the OMCs to the dealer, and hence, the retail motor fuel prices touched all-time high levels across the country on July 17 and have remained at roughly the same levels. The planting progress in the central region, which comprises 75% of total cotton production, is down nearly 5% from the same period last year. Northern India completed sowing cotton in May, while the southern region should be completed in August.
